Double Eagle Petroleum Increases Acreage in Nevada

Double Eagle Petroleum Co. reported today that the Company has acquired leases on 129,575 gross acres, 127,340 net acres, in the Huntington Valley in Elko and White Pine Counties in Nevada. The valley is a sedimentary basin in the Basin and Range Province. Very few wells have been drilled in the basin, and none have produced commercially, but all of the wells that were drilled had oil and gas shows. The best show was 1.499 million cubic feet per day of natural gas from a Paleozoic carbonate at a depth of approximately 9,700 feet. This well was tested in 1980 and never was fracture stimulated. Current plans for power plants and natural gas pipelines in the area make exploration additionally attractive at this time.

The Eastern Washakie Pipeline has been completed and started flowing gas from Cow Creek Field to the Southern Star Pipeline System on January 5, 2006. The pipeline will be owned by a wholly owned subsidiary of Double Eagle Petroleum Co. This twelve inch pipeline has a capacity of over 100 million cubic feet per day with compression and will provide Double Eagle with transportation for its production from the Catalina Unit. Double Eagle plans to drill over 200 coal bed methane wells in the Catalina Unit over the next five years. In addition to the pipeline, Double Eagle is working with Pacific Power & Light to bring three phase electric service to the Catalina Unit. This project is on schedule for completion by November 2006.

The Environmental Impact Study in the Atlantic Rim Area of the Washakie Basin, which includes the Catalina Unit, has been issued in a first draft for comment. The BLM's planned schedule would have the final Record of Decision due in late August 2006. If this schedule is maintained, which cannot be certain, it would allow us enough time to drill and hook-up the 26 coal bed methane wells that we have planned for 2006.

At the Christmas Meadows Prospect, a drilling rig has been secured to begin drilling on June 1, 2006. Prior to drilling the Table Top Unit #1 well on the Christmas Meadows Prospect, the rig has been contracted to drill the Cow Creek Unit Deep #2 well at Cow Creek Field. This will allow us to work with this rig and have everything in good running order before starting on the Table Top Unit #1 that has to be completed in 136 days from rig move in.

At the Madden Field, Double Eagle will be offered a chance to participate in the deep Madison production and gas plant because the participating area is being expanded to encompass lands in which Double Eagle owns an interest. The exact percentage of participation has yet to be determined, but appears to be on the order of 0.33%. The Madison Participating Area produced 10.9 billion cubic feet of gas in October 2005. The new participating area ownership will be effective retroactively as of February 2002. If Double Eagle joins the participating area, it will be entitled to a sizable gas balance, and it will owe its approximate $3.5 million share of previously incurred costs. In addition, a 26,000 foot Madison test is scheduled to be drilled in 2006, and if Double Eagle joins the participating area, it will be offered the same proportionate participation in this $50,000,000 venture.

All these projects, combined with the drilling of the Rattlesnake Prospect, the drilling of the South Fillmore Prospect, the completion of Questar's deep test on the Pinedale Anticline, and continued other drilling at the Pinedale Anticline, will make 2006 a very exciting year.